Further upside in AUD/USD appears likely and should face the next resistance at the 0.7555 level, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘there is room to edge higher 0.7520 before the current upward pressure should ease’. We added, ‘the next major resistance at 0.7555 is unlikely to come under threat’. AUD subsequently rose to 0.7528 before pulling back slightly. While upward momentum has not improved by much, AUD could edge higher from here. That said, the major resistance at 0.7555 is unlikely to come under threat (0.7530 is already a strong resistance level). Support is at 0.7480 followed by 0.7460.”

Next 1-3 weeks: “Our update from yesterday (24 Mar, spot at 0.7490) still stands. As highlighted, further AUD strength is not ruled out but the chance for a rise to the next resistance at 0.7555 is not very high. On the downside, a breach of 0.7440 (‘strong support’ level was at 0.7420 yesterday) would indicate that the AUD strength that started about a week ago has run its course.”